We would like to take this opportunity to briefly explain Jet Token’s broad economic principles of operation. The world’s most successful capital allocator, Warren Buffet, has shared his principles, and because we agree with him, we have edited and repurposed his Owner-Related Business Principles for Jet Token.
OWNER-RELATED BUSINESS PRINCIPLES
Below we set down 5 owner-related business principles that we think may help new shareholders understand our managerial approach.
We hope that you do not think of yourself as merely owning a piece of paper which is a candidate for sale when some economic or political event makes you nervous. We hope you instead visualize yourself as a part owner of a business that you expect to stay with indefinitely, much as you might if you owned a farm or apartment house in partnership with members of your family. For our part, we do not view shareholders as faceless members of an ever-shifting crowd, but rather as co-venturers who have entrusted their funds to us for what may well turn out to be the remainder of their lives. If we have good long-term expectations, short-term price changes (though psychologically vivid) are meaningless for us except to the extent they offer us an opportunity to increase our ownership at an attractive price.
Over time, we expect our business to exceed our expectations. But sometimes we have disappointments, and we will try to be as candid in informing you about those as we are in describing the happier experiences. When we use unconventional aviation measures to chart our progress, we will try to explain these concepts and why we regard them as important. In other words, we believe in telling you how we think so that you can evaluate not only the business but also assess our approach to management and capital allocation.
The financial calculus that we employ would never permit our trading a good night’s sleep for a shot at a few extra percentage points of return. We’ve never believed in risking what we have and need in order to pursue what we don’t have and don’t need.
In our present configuration, we expect outright borrowings to be at the aircraft level, loans that are non-recourse to the parent, Jet Token Inc.
In all of our communications, we try to make sure that no single shareholder gets an edge: Our goal is to have all of our owners updated at the same time. At Jet Token you will find no “big bath” accounting maneuvers or restructurings nor any “smoothing” of quarterly or annual results. We will always tell you how many strokes we have taken on each hole and never play around with the scorecard. When the numbers are a very rough “guesstimate,” as they necessarily must be in some cases, we will try to be both consistent and conservative in our approach.
Thank you again for allowing us to act as stewards of your capital. We look forward to reporting progress in the days ahead and appreciate your support.
Jet Token Inc. (Jet Token) is an Indirect Air Carrier, commonly referred to as a Charter Broker, whereas Jet Token acts as a Principal in buying and reselling air transportation in order to arrange flights on behalf of its clients with Federal Aviation Regulation 14 CFR Part 135 Direct Air Carriers that exercise full operational control of the flights at all times. Jet Token is NOT a registered 14 CFR Part 135 Direct Air Carrier, nor does it provide air carrier services. Jet Token has developed a smartphone booking app, JetToken, available in Apple’s App Store. Flights booked with Jet Token or through the JetToken booking app are subject to the Charter Broker rules contained in 14 CFR Part 295. All services are subject to the terms and conditions available upon request. Jet Token does not carry additional liability insurance. Passengers are covered by aircraft operator insurance.